You are here: Home » News-CM » International » Market Report
Business Standard

China Market rises on upbeat factory data

Capital Market 

The Mainland China equity market kicked off the new week and month in positive territory on Monday, 02 December 2019, as the market mood was buoyed by robust Chinese manufacturing data and strong home sales in November. Market gains were, however, limited amid lingering fears that US-China trade relations may worsen after President Donald Trump signed into law a bill that voiced support for the pro-democracy protests in Hong Kong. At closing bell, the benchmark Shanghai Composite Index inclined 0.13%, or 3.83 points, to 2,875.81. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.22%, or 3.50 points, to 1,596.60. The blue-chip CSI300 index grew 0.19%, or 7.39 points, to 3,836.06.

Shanghai stocks commenced trading with firm footing after weekend data showed China's November factory activity had rebounded for the first time in seven months despite uncertainty over US-China trade talks. The closely watched Purchasing Managers' Index (PMI), a key gauge of activity in the country's factories, rose to 50.2 in November, up from 49.3 last month, China's National Bureau of Statistics said on Saturday. Separately, a private survey on Monday showed China's manufacturing activity expanded more than expected in November as the Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 51.8 from 51.7 in October.

Concern about whether even a partial trade deal can be worked out between the world's two largest economies was offset by economic data showing manufacturing expanded in November.

U.

S.-China tensions heightened last week after Trump signed two pieces of legislation supporting protestors in Hong Kong, prompting China's foreign ministry to claim Washington has sinister intentions after the bills were signed into law. A spokesman for the Chinese foreign ministry added Friday the country will take strong counter-measures against the U. S. The situation in Hong Kong has raised concerns of strains in trade negotiations between Washington and Beijing ahead of Dec. 15, when new tariffs on Chinese exports to the U. S. are set to kick in.

The total volume of China real estate transactions in November rose 35.8% year-on-year, and among 19 cities the report monitored, according to a China Index Academy's report, with Shenzhen having the highest increase of 69%.

CURRENCY NEWS: China's yuan appreciated against the dollar on Monday after the People's Bank of China (PBOC) set firmer mid-point fixing. Prior to market opening, the PBOC set the midpoint rate CNY=PBOC at 7.0262 per dollar, 36 pips firmer than the previous fix of 7.0298. In the spot market, onshore yuan CNY=CFXS opened at 7.0282 per dollar and was changing hands at 7.0293 at midday, 27 pips firmer than the previous late session close.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 02 2019. 17:47 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU